British economy to outperform European rivals this year

Julia Kollewe
City of London
City of London

AFP/Getty Images

The eurozone debt crisis, which continues to rumble on, has forced the International Monetary Fund to take a knife to its economic forecasts. The Fund has slashed its estimate for world growth this year to 3.3%, from 4% previously predicted.

While the UK also had its growth forecasts slashed - to 0.6% from 1.6% this year, and to 2% from 2.4% next year - it will be the best-performing major economy in Europe, beating Germany and France, amid "growing tensions in the euro area".